Fairness in a corporation’s board of directors is vital to fostering inclusion, driving innovation and making informed business decisions. Companies can achieve equity by expanding the candidate pool, implementing effective succession planning and engaging stakeholders and shareholders.
Assessing Board Representation
Public company boards of directors are responsible for overseeing shareholder interests and high-level corporate activities. They influence strategic decisions, executive appointments and governance committees, according to the Financial Industry Regulatory Authority, or FINRA (No. 7 on Fair360, formerly DiversityInc’s 2023 Top Companies for Board of Directors).
FINRA reports that boards include inside (company executives) and outside (non-employees) directors, emphasizing independence. A recent focus on workplace fairness and environmental, social and governance (ESG) factors has led to changes in board composition. Term lengths for directors vary and some companies separate the CEO and board chair roles. As a result, this helps mitigate conflicts of interest, often appointing a “lead director” for oversight.
